24/08/2007 - 15:10

Minara adds to a week of record profits

24/08/2007 - 15:10

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Nickel miner Minara Resources Ltd reported a 145 per cent increase in interim profit today, capping off a week that has seen a raft of mining and mining services companies deliver record profits on the back of high commodity prices and surging activity.

Minara adds to a week of record profits

Nickel miner Minara Resources Ltd reported a 145 per cent increase in interim profit today, capping off a week that has seen a raft of mining and mining services companies deliver record profits on the back of high commodity prices and surging activity.

One of the main drivers of the record profits was last year's extraordinary jump in nickel prices, which ensured nickel miners like Minara, Jubilee Mines, Independence Group and Mincor Resources delivered sharply higher results.

BHP Billiton's nickel division was also the single largest contributor to its record $16.7 billion profit.

The nickel price has fallen sharply from the unusually high levels it reached mid year and Minara today predicted it would remain volatile.

Minara has announced a half-year profit of $246.5 million in the first six months of 2007, a 145 per cent increase on the previous corresponding period.

The company, which will issue a dividend of 25 cents per share in late September, earned a revenue of $529.9 million during the period - up 97 per cent from the $268.5 million recorded at the same time last year.

Minara's cash on hand totalled $435 million on June 30.

In a company announcement, managing director Peter Johnston said the company continued to enjoy strong cash flows.

"We remain well positioned to take advantage of the continued strong nickel market," he said.

"The heap leach trial continues to perform in-line with expectations. The pad extensions are well under way and we continue to progress studies into a range of expansion options."

 

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